The present invention relates to an adaptive communication system within a transaction card network for processing electronic payments.
In one approach for processing electronic payments, merchants and retailers utilize a dial terminal located at each checkout counter or electronic cash register (ECR) within the retail store to communicate to an authorization network. In large stores, many retailers have opted to eliminate stand-beside dial terminals in favor of a workstation/processor controller configuration with integrated card swipe and printer functions. In this approach, the ECRs are linked to a processor controller or in-store processor (ISP) using a local area network (LAN) forming a retail information system. The processor controller is then used as a dial terminal emulator and provides the interface to the authorization network, usually using a dial-up access method. As such, it performs functions such as message formulations, data capture and management of the interface between the ISPs and the authorization network.
Regardless of the configuration, actual dial terminal or emulated dial terminal (software in back room systems), there are several drawbacks in obtaining authorization service. First, the service from credit card networks is no better than the service provided to single-location retail establishments. Most transaction authorization networks that offer dial-up services are designed to serve the actual dial terminal. The dial terminal is a single user device. Currently, the transactions that are entered into authorization networks by expensive, sophisticated retail information systems represent the work done at multiple point-of-sale processors within the store. The authorization networks, however, treat those transactions on a one-at-a-time basis which is identical to those that are entered through stand alone dial terminal devices.
For example, assume an ISP or electronic cash register, ECR A, requests a transaction authorization. The processor controller dials the credit network and transmits ECR A's request. Assume further that ECR B requests an authorization. The ECR controller holds this second request until the first request has been returned. Once ECR A's request is returned, ECR A can complete the sale. The controller then sends ECR B's request and this second transaction is completed once the response is returned. Note that although no redialing is necessary to service ECR B's request, ECR B still had to wait for ECR A to be serviced. In busy stores, with many workstations and many customers standing in line, the processor controller or back room system manages a queue of requests waiting for authorization service. To the authorization network, this type processor controller configuration appears to be a single-user dial terminal device.
A second problem with the many ECR configurations is that the processor controller contains the communication interface to the outside world, which must be constantly updated. During the past decade, electronic payment transactions have benefitted in many ways from the improvements in local access technology and the deregulation of the telephone services.
One such improvement is known as Feature Group B (950) service, which is an efficient and cost effective dialing alternative. Another improvement is data/voice multiplexing technology which is capable of carrying both voice and data on the same physical telephone line. Integrated Services Digital Networking (ISDN) capabilities are emerging and should become common by the end of the decade. Satellite technology delivered to the point-of-sale is also showing some success.
Each local access technology alternative has its own distinct communications interface methods and requires that retailers write new communication software modules to utilize the new technology. This is potentially an expensive proposition which must, each time, be carefully considered and justified before retailers commit the necessary resources.
Such problems are even greater for stores that have a large number of retail locations spread all over the country. All communications alternatives are not going to be available in all of the retail store locations. Multiple sets of communications software within the store systems will have to be maintained and managed. This may not be burdensome for a 50 store chain but it will be very difficult for a national retailer to maintain software at 300 locations, for example.
A third problem is that in many ECR configurations, it is difficult to trace errors or transaction processing delays to and from the authorization network. The problems may occur in the ECRs, the processor controller, or the communication path to the authorization network. With current configurations, diagnostic functions are either inadequate or non-existent.
Moreover, transaction card service providers periodically change their communication requirements for point-of-sale (POS) devices. Each communication requirement has its own purpose in fighting fraud, controlling processing costs and reducing risk in electronic payments. Modifying a large number of POS devices to conform to a new, or enhanced, set of requirements is expensive and bothersome to merchants. Each improvement requires updates in the retailer's ISP software. In some instances, the service provider must then certify those modifications before allowing the merchants access to the transaction card authorization network.
Therefore, it would be desirable to provide a system which affords faster transaction authorization service, provides a transparent interface to improvements, or differences, in local access telecommunications techniques, provides improved performance monitoring and error reporting, and eliminates the need for retailers to modify ISP communication software to respond to new POS compliance requirements.